Can I claim tax deductions even if my home-based business didn’t make a penny?
Image taken on 2007-02-14 14:29:58 by fd.
Is it business, home-based or not, you must have some income to get tax benefits? Help me to be less challenging books.
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on Sunday, April 18th, 2010 at 1:24 pm and is filed under home based business.
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2 Responses to “Can I claim tax deductions even if my home-based business didn’t make a penny?”
I was always under the impression that the less a business made the more you can claim at tax time. My friend is an accountant and she always tells me to hide a bit for this reason.
If you truly had a business and ran it in a business-like manner, then you do the schedule C and claim the deductions.
Keep in mind, you had to actually be open for business, not just getting set up. Zero income is not a good sign.
If you are starting the business, you had better have the expectation of making a profit within 3 years–the IRS expects you to and you can be audited and deemed a hobby (disallowing the losses).
April 18th, 2010 at 1:52 pm
I was always under the impression that the less a business made the more you can claim at tax time. My friend is an accountant and she always tells me to hide a bit for this reason.
April 18th, 2010 at 2:06 pm
If you truly had a business and ran it in a business-like manner, then you do the schedule C and claim the deductions.
Keep in mind, you had to actually be open for business, not just getting set up. Zero income is not a good sign.
If you are starting the business, you had better have the expectation of making a profit within 3 years–the IRS expects you to and you can be audited and deemed a hobby (disallowing the losses).